In a blow to Green Mountain Coffee Roasters, Starbucks
announced yesterday that it would enter the single-brew coffee
machine business, a category dominated by Green Mountain.

The news sent shares of the Keurig manufacturer down 24 percent
after the bell.

This should not come as a surprise to shareholders. Analysts have
asked repeatedly on quarterly conference calls about the expiring
patent portfolio, which executives had difficulty answering.

And then there was the
presentation by hedge fund magnate David Einhorn that went
viral online and specifically outlined the coming problems. Green
Mountain countered that they'd be able to innovate their way out
of the mess — and that expensive deals with partners would keep
the competitive landscape barren.